Setting up labor markup exceptions

About setting up labor markup exceptions

You use the table part of the window to set up any exceptions to the general labor markups and premium markups you entered. You complete one row for each markup exception that you want to set up. You set up exceptions by employee, employee type, and activity. You can:

• Enter different markup amounts that apply only to a specific row.
• Enter a maximum cost rate for a row.
• Pass a cost rate through for a row so as to apply no markups.
• Enter a standard billing rate for a row.
• Choose not to apply premium markups for the row.

If you set up markup exceptions for several combinations of employee, employee type, and activity, Ajera knows what rate to apply for a labor transaction by looking for a match on the table in the following order:

1. Employee - Employee Type - Activity
2. Employee - Activity
3. Employee - Employee Type
4. Employee
5. Employee Type - Activity
6. Employee Type
7. Activity

Example

In this example, the second row defines a rate of $90.00 for all employees who are senior architects on a site visit. However, the first row defines Jeff's rate as $110.00, unlike the other senior architects on a site visit.

1. Before setting up labor markup exceptions, first follow the instructions for setting up labor rate markups.
2. In the table on the Labor tab, enter the employee, employee type, and activity by beginning to type it or by clicking . To indicate all employees, employee types, or activities, leave the cell blank.

3. For the billing rate and override cost rate, do one of the following:

• If you plan to use a flat rateSee: standard billing rate. for this row, enter the billing rate.
• If you plan to enter markupAn increase to a cost by a specified percentage to reflect direct personnel expense (DPE), overhead, and/or profit. The types of markups are cost markup, billing markup, and premium markup. rates for this row, enter the percentage rates.
• If you want Ajera to use a rate other than the employee's regular cost rate, enter it in the Override Cost Rate field. Ajera uses the cost rate to calculate the billing rate.
• If you have a maximum cost rate that can be billed, enter that amount in the Override Cost Rate field, and select the Maximum check box.
• If you plan to pass through the regular cost rate with no markups for this row, leave both the billing rate and override cost rate blank.

4. Next, the table contains columns that correspond to the fields in the Labor Markups box. Use these columns to enter exceptions to the labor markups which appear above the table. If you selected the Accumulate check box for any of the fields above the table, Ajera accumulates the corresponding labor markup in this exception table.

Enter an amount as a percent. For example, enter 40 for 40%.

5. If you entered premium markups in the fields above the table, and you want premium markups to apply to this row, clear the No Premium Markups box by clicking it.

6. If you want to bill only the cost rate for this row without marking it up, click the Pass Through check box.

7. The invoice employee type appears only if it was set up when setting up company preferences. Enter an invoice employee type if you want a description other than the standard employee type to appear on the invoice.  
8. Enter additional rows until you are finished entering all labor rate exceptions.
9. Set up expense rates in one of these ways: using expense markups or using a standard billing rate for expenses.
10. Set up consultant rates in one of these ways: using consultant markups or using a standard billing rate for consultants.
11. Click the Notes tab in the upper left part of the window, and type any notes for the rate table.
12. Click Save.
13. Click Close.